PSA implements new Back in the Race recovery plan
Forms alliance with Dongfeng; sets sales goal of 1.19 million units in China by 2018
PSA’s performance declines
PSA's sales volume in 2013 fell 4.9% to 2,819,000 units on a year-over-year(y/y) basis. The sales volume has been declining since 2010, posting a net loss of EUR 5.01 billion in 2012 and despite the loss being halved, a net loss of EUR 2.32 billion in 2013.
New management plan: “Back in the Race”
In April 2014, PSA announced a new business plan called "Back in the Race" for improved management. It sets targets of achieving an operating cash flow of EUR 2 billion in total during 2016-2018 and of increasing the operating profit margin of the automotive division 2% by 2018 and 5% by 2023. The business plan consists of four pillars: 1. Clarifying each brand distinction, 2. Enhanced planning of models/Introducing models geared for markets, 3. Expansion outside Europe and finding new markets, 4. Cost reduction
Dongfeng investment and China as core market
PSA formed a capital alliance with Dongfeng Motor Corporation (DFM) in March 2014 and the company enhances its business in the Chinese market, aiming to sell 1.19 million units in 2018 (557,000 units in 2013), expand sales of DS-Line and will establish the region as a base of export to Southeast Asian countries.
LMC Automotive forecasts that PSA's light vehicle sales volume (passenger cars and light commercial vehicles with a gross vehicle weight of under 6 tons) in China will exceed France and will be the largest market for PSA by 2014
(Sales forecast up to 2017 provided at the end of this report.)
・Beijing Auto Show 2014: Japanese, European & American green vehicles （May 2014）
・European OEMs: 2013 results and 2014 outlook （April 2014）
・Dongfeng Motor strengthens proprietary & JV brand businesses （Jan 2014）